The euro fell the most in two weeks against the dollar as Italian and Spanish bonds slumped amid political turmoil in the euro-area’s third- and fourth-largest economies, damping demand for the shared currency.

Treasuries climbed, with five-, 10- and 30-year yields sliding to records, as concern mounted that Greece’s failure to meet bailout targets may worsen the European debt crisis, stoking demand for the safest assets.

Government bond yields in the U.S., U.K. and Germany fell to records, while stocks dropped and the euro traded below its lifetime average against the dollar on concern the region’s debt crisis is deepening.